In 2018, the United States supreme court held in Murphy v.National Collegiate Athletic Association, 138 S. Ct. 1461, that a federallaw prohibiting states from authorizing sports betting violated the tenthamendment of the United States constitution. States may now authorizesports betting.
The bill decriminalizes sports betting in Colorado, effective May
1, 2020, under the following conditions:
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The collection of a tax on the net proceeds of sports bettingmust be approved by the registered electors of Colorado atthe November 2019 general election;
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Sports betting will be regulated by the department ofrevenue, subject to supervision by the existing limitedgaming control commission;
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A limited number of licenses will be issued. Persons orentities currently licensed to conduct limited gaming (i.e.,the owners of casinos in Central City, Black Hawk, andCripple Creek) are the only persons or entities eligible tohold a master license to conduct sports betting uponpaying a license fee and submitting to background checks.A master license entitles the licensee to contract with alicensed sports betting operator or a licensed internetsports betting operator, or both, for the operation of sportsbetting; and
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The state will collect a tax of 10% on the net proceeds ofsports betting activity to fund implementation of the statewater plan and other public purposes.